BofA Upgrades Anglo American to Buy

BofA Securities has upgraded Anglo American to buy, with a 4,700 pence per share price objective, according to Investing.com's October 26, 2026 report. The bank's valuation assumes the proposed Teck merger proceeds and includes allowances for potential operating and procurement benefits. For those of us assessing the copper investment case, the upgrade puts a more favourable analyst valuation on the combination before the deal has closed.

BofA's underlying research note was unavailable for our review, so its assumptions here are those reported by Investing.com. The bank uses a sum-of-the-parts valuation, adding the estimated values of the businesses, and includes risk-adjusted benefits from combining them. That gives you a useful distinction when weighing the objective: some of the value depends on what the companies could achieve together. We would therefore assess the merger assumptions alongside the operating assets, because a rating change supplies neither regulatory approval nor evidence that the projected benefits have been delivered.

How far has the transaction actually advanced? In its October 20 production report, Anglo said integration planning was at an advanced stage, while Chinese antitrust approval remained the final outstanding regulatory milestone. Management continued to expect completion by March 2027. The same report says Anglo is engaging constructively with the Chinese regulator; it announces no approval. BofA's merger-based valuation therefore remains conditional on a decision that Anglo had yet to report, and the companies would still have to deliver the operating improvements after completion.

The operating test we covered in Anglo American Copper Output Falls 5% also remains. Anglo's October 20 report showed quarterly copper output down 5%, while annual production guidance held. The upgrade adds an analyst's argument for future value without changing that reported production result. We can see the appeal of combining copper assets, but you still need the mines to produce and the integration to earn its projected savings. A favourable valuation judgment gives us another view of the opportunity; it does not resolve those operating risks.

For Teck holders, the merger also ties your eventual consideration to Anglo shares. Teck's June 30 announcement says each Teck share would be exchanged for 1.3301 Anglo shares, with an exchangeable-share alternative for eligible Canadian holders. BofA's objective applies to Anglo, and the rating action leaves that announced exchange ratio unchanged. If the merger completes, Anglo's operating performance and the combined business's valuation would help determine what you own. Until then, we would keep the bank's estimated combination benefits separate from the results each company reports on its own.

We will watch Teck's volumes, costs and any merger update in its October 29 results, due before market open according to its October 6 announcement, and for a Chinese regulatory decision ahead of Anglo's expected March 2027 completion.

Seek the truth and be prepared,

Equedia News

Sources

• Investing.com, BofA upgrades Anglo American as Teck merger boosts copper growth, October 26, 2026
• Anglo American, Third-quarter production report, October 20, 2026
• Teck Resources, Merger share exchange and letter of transmittal announcement, June 30, 2026
• Teck Resources, Third-quarter results date, October 6, 2026
• Equedia News, Anglo American Copper Output Falls 5%, October 20, 2026

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